Hermès International: First Quarter 2024 Revenue
Quarterly information report as at the end of
March 2024
Solid sales growth in the first
quarter (+17% at constant exchange rates and +13%
at current exchange rates)
Paris, 25 April 2024
The group’s consolidated revenue amounted to
€3,805 million in the first quarter of 2024, up 17% at constant
exchange rates and 13% at current exchange rates, with a solid
activity in all geographical areas.
Axel Dumas, Executive Chairman of Hermès, said:
“The solid sales growth in the first quarter 2024 reflects the
loyalty of our clients worldwide, the strength of the group’s
artisanal model and the desirability of our creations in a more
complex environment. Hermès pursues its strategy based on
exceptional know-how, the finest materials and uncompromising
quality.”
Sales by geographical area at the end of
March(at constant exchange rates unless otherwise
indicated)
At the end of March 2024, all the geographical
areas posted double-digit growth. The networkcontinued its
development, with store openings and extensions.
Asia excluding Japan (+14%) pursued its growth
in all the countries of the region. The desirability of the objects
and the house’ value strategy enabled to offset softer traffic in
Greater China following the Chinese New Year. In January, the Wuxi
store, the thirty-fourth Hermès address in China, opened in the
eastern province of Jiangsu.
Japan (+25%) recorded an exceptional growth,
thanks to the loyalty of its local customers. A new store was
inaugurated in February in the Azabudai Hills district of Tokyo,
amidst welcoming and luminous interiors.
Americas (+12%) posted a sustained growth,
thanks to the momentum in the United States. In March, the
travelling exhibition Hermès in the Making, which showcased the
know-how of the artisans, was presented in Mexico City, and the
Parade event, around the Home universe, was hosted in Los
Angeles.
Europe excluding France (+15%) and France (+14%)
achieved solid growth, despite high comparison bases. In France,
the 14th edition of the Saut Hermès was successfully held at the
Grand Palais Éphémère in Paris. Furthermore, our leather artisans,
goldsmiths and the École Hermès des savoir-faire apprentice
training centre shared their passion for gesture and the finest
materials at the Entrez en matières exhibition in Paris during the
European Artistic Crafts Days (EACD).
Sales by sector at the end of
March(at constant exchange rates unless otherwise
indicated)
At the end of March 2024, all the métiers
confirmed their solid momentum and achieved good performances.
The Leather Goods and Saddlery métier (+20%),
for which the demand is very sustained, saw a strong increase. The
collections have been enriched with new models, including Arçon,
the Haut à courroies Multipockets or Constance Élan. Production
capacities continue to grow with four leather goods workshop
projects scheduled over the next four years: Riom (Puy-de-Dôme) in
2024, l’Isle-d’Espagnac (Charente) in 2025, Loupes (Gironde) in
2026 and Charleville-Mézières (Ardennes) in 2027, which will
reinforce the nine centres of expertise located throughout France.
Hermès reinforces its local anchoring in France and develop
employment and training.
The Ready-to-Wear and Accessories sector (+16%)
pursued its momentum. The Spring-Summer 2024 ready-to-wear
collections were given a great welcome. The 24, faubourg
Saint-Honoré store in Paris presented the women’s Hors-Série
collection, composed of exceptional pieces. Demand was robust for
fashion accessories and shoes, with models displaying the abundance
of the house’s savoir-faire.
The Silk and Textiles sector (+8%) recorded
sustained growth, supported by the constantly renewed creation of
men’s and women’s collections based on a variety of formats and
outstanding materials.
The Perfume and Beauty sector (+4%) compared
itself with a first quarter 2023 which benefitted from the launch
of the eau de toilette Un Jardin à Cythère. The H24 Men’s line was
enriched with Herbes Vives, and the Hermessence collection, which
celebrates 20 years this year, unveiled a new eau de parfum Oud
Alezan. In February, Hermès Beauty launched a new limited edition
of Rouge Hermès and nail enamels.
The Watches métier (+4%) continued its
development. At the Geneva Watches & Wonders exhibition held in
mid-April, Hermès presented Hermès Cut,a new creationfeaturing
manufacture movement.
The Other Hermès sectors (+25%), which include
Jewellery and Home universe, pursued their strong growth,
highlighting the full creative strength and singularity of the
house, with, for example, new jewellery creations based on the
Chaîne d’ancre, the equestrian universe or the Kelly lock. In
January, the Tressages équestres tableware service was presented in
Paris.
A responsible, sustainable
model
True to the house’s employment model and the
desire to share the fruits of its growth with all those who
contribute to it on a daily basis, at the beginning of 2024, the
group distributed over €200 million in respect of 2023 incentive
schemes and profit-sharing, and almost €100 million in group
bonuses to all employees worldwide, in addition to the 6th free
share plan announced last June. Hermès also continued the
acceleration of recruitment.
Global warming, and the protection of the
biodiversity are matters of concern, addressed by the group through
its climate strategy, its concrete initiatives for responsible
supply chains and its policies on preserving natural resources.
In line with its commitment to a carbon
trajectory of 1.5°C, validated by the SBTi (Sciences Based Targets
initiative), the house continued to roll out its decarbonisation
plans across all the business lines, through sobriety programmes on
the value chain and the use of low-carbon energies. Hermès, engaged
since 2012 in carbon offset projects with high social and
environmental value, hosted the 2024 edition of the Livelihoods day
at its site in Pantin, in March. The event was attended by over 30
NGOs and more than 1,000 participants representing some twenty
different nationalities with the aim to support innovative
solutions for the climate, communities and biodiversity.
Other highlights
At the end of March 2024, currency fluctuations
represented a negative impact of €148 million on revenue.
Hermès International did not redeem any shares,
excluding transactions completed within the framework of the
liquidity contract.
As announced during the annual results, Hermès
became a majority shareholder in January alongside its partner in
the Middle East in the retail activities located in the United Arab
Emirates. As a reminder, the impact resulting from this acquisition
of a majority stake will not be significant on the 2024
consolidated financial statements.
Outlook
In the medium-term, despite the economic,
geopolitical and monetary uncertainties around the world, the group
confirms an ambitious goal for revenue growth at constant exchange
rates.
The group has moved into 2024 with confidence,
thanks to the highly integrated artisanal model, the balanced
distribution network, the creativity of collections and the loyalty
of clients.
Thanks to its unique business model, Hermès is
pursuing its long-term development strategy based on creativity,
maintaining control over know-how and singular communication.
For 2024, the theme will be In the Spirit of the
Faubourg. This place, the fruit of Émile Hermès’ dream, is the
beating heart of the house. It accompanies Hermès everywhere and
inspires the effervescence and joyful spirit so dear to the
house.
The press release on revenue at the end of March
2024 is available on the group’s website:
https://finance.hermes.com.
Upcoming events:• 30 April
2024: General meeting of shareholders• 25 July 2024:
publication of H1 2024 results (after market)• 24 October
2024: Q3 2024 revenue publication
INFORMATION BY GEOGRAPHICAL ZONE
(a)
|
|
1st quarter |
Evolution /2023 |
In
millions of Euros |
|
2024 |
2023 |
Published |
At constant exchange rates |
France |
|
312 |
273 |
14.3% |
14.3% |
Europe
(excl. France) |
|
444 |
391 |
13.5% |
14.6% |
Total Europe |
|
757 |
664 |
13.9% |
14.5% |
Japan |
|
357 |
322 |
10.8% |
25.2% |
Asia-Pacific (excl. Japan) |
|
1,920 |
1,763 |
8.9% |
13.9% |
Total Asia |
|
2,277 |
2,084 |
9.2% |
15.7% |
Americas |
|
614 |
556 |
10.3% |
11.8% |
Other |
|
158 |
75 |
111.0% |
112.6% |
TOTAL |
|
3,805 |
3,380 |
12.6% |
17.0% |
(a) Sales by destination.
INFORMATION BY SECTOR
|
|
1st quarter |
Evolution /2023 |
In
millions of Euros |
|
2024 |
2023 |
Published |
At constant exchange rates |
Leather Goods and Saddlery (1) |
|
1,628 |
1,409 |
15.5% |
20.3% |
Ready-to-wear and Accessories (2) |
|
1,061 |
950 |
11.7% |
15.9% |
Silk
and Textiles |
|
242 |
234 |
3.4% |
7.9% |
Other
Hermès sectors (3) |
|
505 |
421 |
20.0% |
24.5% |
Perfume and Beauty |
|
130 |
126 |
3.0% |
4.3% |
Watches |
|
166 |
166 |
0.1% |
4.3% |
Other
products (4) |
|
74 |
74 |
(0.8)% |
1.4% |
TOTAL |
|
3,805 |
3,380 |
12.6% |
17.0% |
(1) The “Leather Goods and Saddlery” business
line includes bags, riding, memory holders and small leather
goods.(2) The “Ready-to-wear and Accessories” business line
includes Hermès Ready-to-wear for men and women, belts, costume
jewellery, gloves, hats and shoes.(3) The “Other Hermès business
lines” include Jewellery and Hermès home products (Art of Living
and Hermès Tableware).(4) The “Other products” include the
production activities carried out on behalf of non-group brands
(textile printing, tanning…), as well as John Lobb, Saint-Louis and
Puiforcat.
REMINDER
2023 KEY FIGURES
In millions of euros |
2023 |
2022 |
|
|
|
Revenue |
13,427 |
11,602 |
Growth at current exchange rates vs. n-1 |
15.7 % |
29.2% |
Growth at constant exchange rates vs. n-1 (1) |
20.6 % |
23.4% |
|
|
|
Recurring operating income (2) |
5,650 |
4,697 |
As a % of revenue |
42.1% |
40.5% |
|
|
|
Operating income |
5,650 |
4,697 |
As a % of revenue |
42.1% |
40.5% |
|
|
|
Net profit – Group share |
4,311 |
3,367 |
As a % of revenue |
32.1% |
29.0% |
|
|
|
Operating cash flows |
5,123 |
4,111 |
|
|
|
Operating investments |
859 |
518 |
|
|
|
Adjusted free cash flow (3) |
3,192 |
3,405 |
|
|
|
Equity – Group share |
15,201 |
12,440 |
|
|
|
Net cash position (4) |
10,625 |
9,223 |
|
|
|
Restated net cash position (5) |
11,164 |
9,742 |
|
|
|
Workforce (number of employees) (6) |
22,037 |
19,686 |
(1) Growth at constant exchange rates is
calculated by applying the average exchange rates of the previous
period to the current period’s revenue, for each currency.
(2) Recurring operating income is one of
the main performance indicators monitored by the group’s General
Management. It corresponds to the operating income excluding
non-recurring items having a significant impact likely to affect
the understanding of the group’s economic performance.
(3) Adjusted free cash flow corresponds to
the sum of operating cash flows and change in working capital
requirement, less operating investments and repayment of lease
liabilities, as per IFRS cash flow statement.
(4) The net
cash position includes cash and cash equivalents on the asset side
of the balance sheet, less bank overdrafts presented within the
short-term borrowings and financial liabilities on the liability
side of the balance sheet. It does not include lease liabilities
recognised in accordance with IFRS 16.
(5) The
restated net cash position corresponds to the net cash position,
plus cash investments that do not meet IFRS criteria for cash
equivalents as a result of their original maturity of more than
three months, minus borrowings and financial liabilities.
(6) The headcount relates to employees on
permanent contracts and those on fixed-term contracts lasting more
than 9 months.
The press releases and the presentations of the
results are available on the group’s website:
https://finance.hermes.com
The consolidated financial statements are
available at the following address https://finance.hermes.com and
on the AMF website: www.amf-france.org
- hermes_20240425_q1revenue_en
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